Equity is the difference between any outstanding mortgage and value of the property. A Transfer of Equity is when one or more owners of a property, transfers or sells their interest to another owner or owners of that property or wishes to add one or more people to the legal register alongside themselves.
There may be a number of reasons why a Transfer of Equity is required.
Here are some of the more common reasons:
Marriage
Following marriage, the partners often wish to transfer the matrimonial home into joint names.
Divorce or Separation
Following divorce or separation, the partners may wish to transfer a jointly owned property back into the sole name of one of the partners.
Tax Planning
Property owners are sometimes advised by their tax planners or accountants to transfer a share of the family home into the name of a child or other family member.
Remortgages
Probably the most common reason for a Transfer of Equity. For example when a property is owned in a sole name and that person wishes to remortgage the property, they may at the same time wish to add a family member/partner as a joint legal owner of the property, particularly if the original owner has an adverse credit rating.
If the property is subject to an existing mortgage then you should firstly obtain the formal consent of your lender(s) to the Transfer of Equity. To do this you may need to make an application with the lender and a fee may be payable. You should enquire with your lender(s) regarding their requirements and process for giving consent before you instruct a solicitor. If consent is given by your lender(s), then that is when you should instruct HilliersHRW.
Contact:
Deborah Bishop. Bedford Office. 01234 858000. Freya Buckley. Stevenage Office: 01438 346000
